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Windows movie maker will not use protected aac files which is what the majority of iTunes music is. There are ways around it. In general you would purchase the DRM free upgrade for your music (thirty cents per iTunes purchased song) then use the iTunes utility to convert all your music to MP3, voila working in Windows Movie Maker.
Other than that you can buy individual unprotected MP3s off of Rhapsody.com for a dollar apiece. They have most of the popular music out there but not quite as large a library as iTunes.